MRF (ASX) Ann: MRL doubles holding of Sri Lankan graphite acreage

MRF has done exactly what I have been posting about:

Grow the assets; CR and Develop Licenses.

This exciting growth in value comes after 3 weeks straight closing on support.

Real Growth in Value and real assets.

Well done to all those Mid-termers and Long-termers who have called this one.

Well done to the many Smurfers with your posts this year.

This was my pick of the year and as a fundamental investor it is one thing to trust the mathematics it is another to see it translate into assets.

Well done to the Smurf management team for it hard work and best practices.

If you read my posts about this you will see what I have been talking about:

- First Assets; Results; Exploration; then Cashflow and finally value adding.
- Looking after the environment, skills training, safety, transparency, best practices.
- The Sri Lankan people are very moral and great to work with; MRF can be a force for good in their villages by providing real skills training. MRF is able to look after its workers and the people will look after them.
- Purity of Vein makes it unique in the world.
- The Production supply chain is 2015-2016 and is not a concern.
- In 2014 it is about assets while they are available and aggressive exploration.
- These new assets send a clear signal.
- Structure is vital and MRF has constantly improved its structure this year.
- Direct to Market sales supplement exploration and mining.
- Vein Graphite is one of the top 3 strategic materials in the world.
- Vein is vital for Technological supremacy this first half of the century. Example; Graphene Chips replacing Silicon.
- Macro Drivers determine which markets and which small caps are Value investments.
- Sovereign Risk versus Sovereign Leverage in Sri Lanka makes it the most attractive place in Asia.
- Graphene and Spherical Graphite.
- Fundamentals: Balance Sheet 101
- Flake/Vein Imbalance and inefficiency. The Price of Vein is looking at a 30% to 60% rise.
- Mining costs of Vein so low.
- Rising demand. For Example Electric Vehicles.
- The world is turning to Sri Lanka for 3 big reasons: Trade, Security, and Vein Graphite.
- Australia is well liked and has a great relationship and trust built up and our soft power is only going to grow. China is beating Australia out with Hard Power and its Soft Power is ramping up.
- Like I predicted this year Australia can offer education, police training/support, navy/security, infrastructure, rural/agricultural and good governance systems.
- America may be pivoting from attack to soft power along with EU and England.
- Sri Lankan Markets and investment.
- The MRF/BBR Peer Group is the most under-priced/valued in the market.

MRF has done it - It is a long road with more to go but what a great year. The deeper the foundations the taller the building.

Kind Regards